US-based insurtech Kin Insurance, which is focused on home insurance, is going public via merger with blank-check firm Omnichannel Acquisition.
The merger will take the company’s valuation to $1.03bn and it will be listed on NYSE under the symbol “KI”.
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In-addition, the deal includes $80m private insurance in public equity (PIPE) at $10 per share of Class A common stock of Omnichannel led by HSCM Bermuda and Senator Investment Group.
Other PIPE investors include Gillson Capital, Park West Asset Management, Joe Plumeri, Former Chairman and CEO, Willis Group Holdings; Stephen Ross, Jeff Blau and Bruce Beal of Related Companies; and Gary Vaynerchuk, CEO of VaynerMedia.
Upon closing, Kin expects to receive $242m in cash, in-addition to $80m raised in Series C round of funding, which was joined by NBA superstar Draymond Green and four-time major champion golf pro Rory McIlroy.
The insurer will use the proceeds to boost growth in the existing market and foray into new ones apart from marketing and product development.
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By GlobalDataConcurrently, the insurer signed ‘a stock purchase agreement to acquire an inactive insurance carrier that holds licenses in more than 40 states.’
Both the acquisition and the merger deals are expected to close in Q4 of 2021, which is subject to regulatory nod and other customary closing conditions.
Kin stated that it is the only pure-play direct-to-consumer digital insurer in the homeowners’ insurance market. Its proprietary technology enables customers to buy/change insurance policies and file claims in minutes online.
Kin co-founder and CEO Sean Harper said: “Access to affordable home insurance is challenging in regions that are impacted by climate change and severe weather; at Kin, our proprietary technology and deep data advantage enables us to best evaluate risk and price home insurance fairly for consumers.
Omnichannel CEO and chairman Matt Higgins said: “Kin’s direct-to-consumer approach to insurance is a true differentiator and provides it with a clear-cut advantage versus the competition.
“The Omni team is already hard at work helping elevate Kin’s brand presence, expanding Kin’s acquisition channels and layering in the most cutting-edge acquisition tactics.”
